Monday, April 7, 2014

Helpful Plano Financial Adviser Provides Tips For Retirement Planning

By Nelson Cozad

Someday you will likely need to or want to retire. Whether you plan to see the world or spend more time at home, retirement is costly. A JC Penney retirees advisor in Plano provides tips to help ensure your plans for the future will allow you to have the finances to enjoy retirement to the fullest.

Start saving early. Compounded interest does add up and allows your money to work in your behalf. Individuals who are not yet saving should begin immediately. The wealth you accumulate through savings helps to supplement other sources of retirement income and provide you with a more enjoyable future.

Be realistic in your goals. While there are many rules of thumb, the best way to plan is based on needs. Think honestly about the way you plan to live when you retire and how much this will cost you. Use Social Security and other retirement income as a base which is supplemented by your savings.

If your company offers a 401(k) plan it is one of the best and easiest ways to save. The contributions you make to this account provide an immediate tax deduction. In most cases, companies offer matching contributions to the money you invest through this type of account. Take advantage of the matching dollars by maximizing your deduction.

IRAs also provide a tax advantage. Traditional accounts offer tax deferred growth and sometimes provide tax deductible contributions. A Roth IRA does not give the tax deduction, but does grow in a tax free manner. Thus, when the owner begins to take withdrawals from these accounts, there is no need to pay income taxes on the money.

Retirement can be very expensive; however, by making use of tax laws you can increase your savings so you keep more of the income to meet your needs. A Plano financial advisor helps those who are unsure of the best way to proceed. There is no time like today to begin planning for living your golden years in a way that you will enjoy.

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